What is Credit History and use of Credit History

Credit History is a record of a borrower’s repayment habit towards his/her debts (Credit Card or Loan). It measures their responsibility towards repaying their debts. Credit history is recorded in a credit report which showcases the number and types of credit accounts, how long each account has been open, amounts owed; the amount of available credit is used, whether credit card bills are paid on time and the number of recent inquiries. Use of Credit History Credit History is an important factor to determine the creditworthiness of borrowers in repaying debts. Credit history helps lenders to determine annual percentage rate (APR), grace period and several other factors while lending any form of loan or credit card. When creditors review your credit history, they may assess several different factors such as recent activity, the length of time that credit accounts have been open and active and the patterns and regularity of repayment over longer periods of time. If you are lacking in your credit history, it is time you should start working on it. If you would like to get help, Apoorvaa is here for you.